Nama sees property prices stabilising
There are growing indicators that the Irish commercial and residential property markets are stabilising, the chairman of the National Asset Management Agency, Frank Daly, has said.
In an end of year statement, the agency - which began taking over property development loans from the collapsing Irish banks almost three years ago - said it has taken in approximately €6.9 billion from property sales to date.
A further €3.6 billion in rent has been taken in from properties controlled by debtors and receivers.
Sales transactions have been completed in relation to more than 3,900 properties and a further €1.5 billion worth of property is on the market either through debtors or receivers.
The agency took in a total of €4.4 billion during 2012, including €1.3 billion that was related to rent and other non-property disposal sources.
Despite the fall in property values during the period since its inception, and what it calls its prudent impairment policy, the agency remains profitable.
It made a net profit after tax in the six months to the end of June last of €222 million.
A detailed impairment review is being carried out and its conclusions will be reflected in the full 2012 audited accounts that are expected by mid-2013, the agency said.
Nama produced a net profit after tax of €247 million in 2011.
In relation to its €2.5 billion investment plan, the agency said it has to date approved €1.7 billion in advances to debtors, of which €1 billion has been drawn down.
In relation to its €2 billion vendor finance initiative, the agency said it completed its first vendor finance transaction during 2012 and that more are in the pipeline and nearing completion.
On its 20 per cent deferred payment scheme, the agency said it has agreed sales on more than 100 properties with a value of €18 million and will extend the scheme on a phased basis during 2013 to a maximum of 750 properties.
The initiative, which protects buyers against falls of up to 20 per cent in the value of the proprieties, had been targetting 295 properties in 12 counties.
The agency also said it has approved rent abatements totalling €13.5 million for commercial tenants, and had identified close to 3,900 residential properties it believes could be used for social housing.